Hey, What Happened To July? Every Fall real estate sales turn down. I hope that Fall hasn’t started early this year because Napa’s July sales were disappointing--especially considering that mortgage rates are the lowest in thirty years! Overall, total sales were down 19% compared to June. To keep that in perspective, though, it is noteworthy that sales were still up 6% when compared to July, 2009. Another noteworthy number is that “normal” sales were up for the sixth month in a row! Conversely, short sales and REO sales were both down significantly. Sales in the lower price ranges (under $300,000) were slower, as well as sales between $300,000 and $500,000. Sales in the $500,000 to $800,000 range were steady, but sales over $800,000 soared in July. With the upper end of the market suddenly doing much better, the median price increased to $372,000, which was a fourteen percent gain over June. This is the first month this year where we have seen a recovery of sorts in the upper end of the market. Let’s hope this is the beginning of a trend.
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Are Home Values Rising? Yes, and mayber. In the lower price ranges, let’s say under $300,000, values have actually recovered quite a bit thanks to multiple offers on most properties and shrinking inventory. In the $300,000 to $500,000 range, values are increasing and there is good activity. Between $500,000 and $800,000, it seems that values are stabilizing. For homes over $800,000, it's hard to tell. It appears that values may still be coming down. But with July's significant increase in upper end sales, this could bring price stability--but it's too early to say. If you would like a personal assement of the market, just email me or call me. If you want to buy a home, or need to sell your home, call me. Let’s look at your specific situation. Together, we’ll make it happen—and unlike dealing with the large companies, you’ll always get my personal attention. Dave Johnson 707-226-1400
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